The Washington state Attorney General's Office has initiated legal action against software company RealPage and nine local landlords. The lawsuit, filed in King County Superior Court, alleges that RealPage and its software are central to a conspiracy that has led to rising rent prices, affecting tenants adversely.
According to the lawsuit, RealPage provides landlords with software tools that push rental prices higher than they might otherwise set, reducing the risk of being undercut by competitors. The state Attorney General's Office has found that markets with RealPage-managed properties often see higher pricing and lower occupancy rates compared to similar properties that do not use the software.
"RealPage’s unfair practices are cheating renters and pricing families out of stable housing," said Attorney General Nick Brown. "Washington is facing a housing crisis and we must respond with every available tool."
Washington previously participated in a multi-state antitrust lawsuit led by the U.S. Department of Justice, but the state has since withdrawn to address the issue within its own court system. The current lawsuit, citing six violations of the state's Consumer Protection Act, seeks restitution for impacted Washington renters. Between 2017 and 2024, it is estimated that 800,000 leases in Washington involved RealPage software for pricing.
The investigation has determined that RealPage’s software algorithms rely on collected nonpublic data from landlords, which encourages rent increases. One potential client feedback highlighted: "I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That’s classic price-fixing.”
Legislators have voiced their support for the Attorney General's action. House Speaker Laurie Jinkins remarked, "I welcome AG Brown’s entry into this work and his willingness to fight against giant corporations using unfair algorithms."
Senator Yasmin Trudeau added, "It is imperative that we prevent any company of taking advantage of Washington renters and that we do anything to prevent unnecessary and increased costs for people just trying to pay their rent and stay in their homes."
The lawsuit argues that RealPage’s software maintains prices above a minimum level and sometimes above a ceiling, discouraging price negotiations and concessions. It further alleges that landlords are incentivized to keep prices high despite decreased occupancy through strategies advised by the pricing software.
The complaint also points to user group meetings organized by RealPage, where landlords may discuss strategies and vote on software changes that could be anticompetitive.
The lawsuit aims to put a stop to RealPage's and the landlords' alleged malpractices, including price and occupancy coordination.
The team working on the lawsuit includes several Assistant Attorneys General, paralegals, an investigator, and an economic analyst. The lawsuit details can be found on the Washington Attorney General's website.
The Washington Attorney General serves the state and its residents, providing legal representation and enforcing laws related to consumer protection and civil and environmental rights.